Adhvit Innovations

Material Management System, is a software solution designed to efficiently and effectively manage an organization's materials, supplies, and inventory.

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Material Management System

A Material Management System (MMS) is a software application or a set of procedures designed to streamline and optimize the management of materials within an organization. It encompasses various functions related to the acquisition, storage, distribution, and utilization of materials required for production or service delivery.

Materials management is the process of planning and controlling material flows. It includes planning and procuring materials, supplier evaluation and selection, purchasing, expenditure, shipping, receipt processes for materials (including quality control), warehousing and inventory, and materials distribution. After the construction project finishes, maintenance of materials can also be looked as a part of materials management. Material management processes and functions in large-scale capital projects encompass multiple organizations and integrated processes. Capital project supsply networks typically include project owners, main contractors, EPC/M contractors, material suppliers, logistics partners and project site contractors.


Key features of a Material Management System may include:

Inventory Management:

  • Stock Control:
    • This involves monitoring the quantities of various materials in stock, including raw materials, components, and finished goods.
  • Reorder Point Optimization:
    • Calculating the optimal reorder points for each item based on factors such as lead time, demand variability, and desired service levels.
  • ABC Analysis:
    • Classifying inventory items into categories based on their value and prioritizing management efforts accordingly.
  • Inventory Valuation:
    • Assigning monetary value to inventory for accounting and financial reporting purposes.

  • Supplier Management:
    • Maintaining a database of approved suppliers, evaluating their performance, and negotiating contracts and pricing agreements.
  • Purchase Order Processing:
    • Generating and tracking purchase orders, managing approvals, and monitoring order status.
  • ABC Analysis:
    • Classifying inventory items into categories based on their value and prioritizing management efforts accordingly.
  • Supplier Relationship Management (SRM):
    • Building and nurturing relationships with key suppliers to foster collaboration and drive mutual value.